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Tariff Costs Put New Pressure on U.S. Corporate Profits

Rising tariff expenses are beginning to weigh heavily on U.S. companies, prompting executives across multiple industries to warn that profit margins may tighten in the months ahead. Many firms had initially suggested they could manage the added costs through efficiency improvements or selective price increases, but that confidence is fading as import-related expenses continue to climb. Companies that rely on global supply chains are feeling the strain most acutely. Higher costs on imported materials and components are forcing difficult decisions: pass the increases on to consumers, risking weaker demand, or absorb the costs internally, which directly erodes profitability. For many businesses, neither option is attractive. Consumer-facing brands are finding it especially challenging to raise prices further, as shoppers show growing sensitivity to even modest increases. This resistance limits the ability of firms to offset tariff-driven expenses, creating a squeeze that is beginning t...

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Canada’s Capital-Gains Tax Hike Faces Crucial Vote

 

In a pivotal moment for Canadian finance, Prime Minister Justin Trudeau’s government is set to call a vote on a contentious tax change. The proposed hike in the capital-gains tax inclusion rate has sparked debate across the nation, with significant implications for both individuals and businesses.

  • Tax Change Proposal: The government plans to increase the capital-gains tax on gains over C$250,000, affecting a small percentage of Canadians.
  • Potential Impact: Business groups have criticized the move, fearing it could deter investment and exacerbate productivity issues.
  • Political Strategy: The Liberals have separated this tax change from the budget bill, possibly aiming to challenge the Conservatives politically.
  • Revenue Expectations: The tax hike is estimated to generate almost C$20 billion over five years, funding new programs in housing and national defense.

The vote, scheduled for Monday, will be a defining moment for Trudeau’s fiscal policy and could set the stage for Canada’s economic direction in the coming years.

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